World food prices up by 1.1% in March – FAO

The Food and Agriculture Organisation of the United Nations (FAO) reported a 1.1 per cent increase in world food commodity prices in March, marking the first rise in seven months driven by surges in international quotations for vegetable oils, dairy products, and meat, the UAE news agency WAM reported on Sunday.

The FAO Food Price Index (FFPI), which monitors the monthly changes in the international prices of globally traded food commodities, averaged 118.3 points in March, representing a 7.7 per cent decrease from its value a year ago.

Leading the increase in March was the FAO Vegetable Oil Price Index, which rose by 8.0 per cent from February, hitting a one-year high due to increased quotations for palm, soy, sunflower, and rapeseed oils.

The FAO Dairy Price Index rose for the sixth consecutive month, up by 2.9 per cent from February, driven by increasing global cheese and butter prices.

Furthermore, the FAO Meat Price Index also saw an increase, rising by 1.7 per cent from the previous month, with international prices for poultry, pig, and bovine meats all going up.

In contrast, the FAO Cereal Price Index fell by 2.6 per cent, averaging 20 per cent below its March 2023 value.

This drop was led by decreasing global wheat export prices, which declined due to strong export competition among the European Union, the Russian Federation, and the United States, highlighted by cancelled purchases by China.

Maize export prices saw a slight increase in March, partly due to logistical difficulties in Ukraine, while the FAO All Rice Price Index dipped by 1.7 per cent amid subdued global import demand.

Lastly, the FAO Sugar Price Index saw a decline of 5.4 per cent from February, driven by an upward revision to the 2023–24 sugar production forecast in India and the accelerated pace of the harvest in Thailand.